New Zealand has been crying out for a comprehensive digital asset strategy to guide a sector which desperately needs better governance.
The recent publication of an actionable roadmap to a new set of standards BlockchainNZ's Digital Asset Working Group will help them achieve their aims.
Analysing the Roadmap
The roadmap seeks clear legal definitions, 1:1 redemption rights, reserve backing rules, attestation, disclosure requirements and a well-thought-out licensing regime for issuers.
These steps are designed to encourage citizens to hold or use digital assets in retail and wholesale sectors without fear of losing value.
The Working Group believes NZ needs a licensing regime with world-class capital, governance and cybersecurity standards that convince institutions to confidently hold tokenised assets.
For exchanges, the paper emphasised aligning financial protections, segregating assets, operational standards and dispute-resolution channels. These practical measures prevent counterparty risk and protect consumers.
Why the Timing is Important
Several countries worldwide are regulating digital assets after years of leaving them on the periphery of global finance discussions.
The European Union's Markets in Crypto-Assets (MiCA) regulation (2023) framework has been the guidebook for digital asset companies across its member states.
Other major markets, including the United Arab Emirates (UAE) and the United States, also now have clearer rules regarding cryptocurrencies.
The UAE has gone a step further by trying to establish itself as a recognised force digital assets by hosting international events and tripling its investment through Mubadala to $518 million.
Consequently, there is competitive pressure on New Zealand to follow suit and fall in line with trusted frameworks. Crypto is already popular in NZ's domestic payments and online gaming industry, so the roadmap's focus on payments is well-timed.
As the Kiwi government updates gambling regulations, the Working Group's recommendations offer a chance to harmonise gaming payments with financial safety.
Reputable operators such as Malina Casino already support crypto payments for deposits and withdrawals, allowing players to transact in digital assets such as Bitcoin, Ethereum, Solana and USDT.
However, a clear digital asset and financial safety framework allows regulators to accommodate innovation in iGaming payments and install even stronger safeguards for consumers.
How New Zealand Compares with the United States
Crypto adoption is relatively average at retail level in the US, with data showing that only around 14-16 percent of American adults currently own cryptocurrencies.
But despite the limited penetration, the sheer size of the US economy means digital assets are still relevant, prompting lawmakers into action.
Digital assets, especially stablecoins, have become prevalent in wholesale payments, remittances and trading. Congress and federal agencies have implemented national frameworks for issuance, custody and more.
New Zealand's market is smaller, but crypto engagement is proportionally higher, and offshore leakage is more pronounced. The country is still working toward regulatory supervision by next year, pushing users and firms to foreign exchanges and custodians.
The roadmap addresses this difference, acknowledging that the US is responding to systemic risk while NZ is dealing with structural risk.
What Success Looks Like for New Zealand
The roadmap's 2030 vision entails the use of licensed digital assets with redemption rights.
It also charts a course toward regulated custodians with capital and top cybersecurity ratings, supervised exchanges that differentiate client assets while meeting financial safety expectations.
The roadmap also advocates for clear guidance to prevent arbitrary debanking of compliant digital asset businesses. If New Zealand follows these steps, it would spur innovation and create high-value jobs as the government defines international standards instead of following them.
The Working Group wants a legislative approach implemented that introduces targeted laws before a proper supervisory framework is in place. New Zealand can then test-run the new system in sandboxes, adapting and tightening the standards along the way.
Having sensible rules protects consumers and financial systems while nurturing payment innovation that delivers real benefits. The Working Group's roadmap is a fantastic path for regulators as they bid to keep the country's digital assets market regulated and trusted.
